On May 23, 2019, the EOS price reached a low of $5.72. A gradual increase ensued which intensified on May 26. On May 31, the price reached a high of $8.65. It has been decreasing since.
EOS is launching at https://t.co/iQARfi557o and in the iOS and Android apps within the next 15 minutes. You may need to update your app to properly buy, sell, convert, send, receive, or store EOS. We will update when EOS is fully live. https://t.co/sh8XmE1Wit
— Coinbase () May 30, 2019
Prices increased throughout the day. However, a rapid decrease began the next day. This could be a response to the decreases suffered by Bitcoin. As we have seen, the EOS price follows that of BTC in rapid upward and downward moves.
For more on EOS, keep reading below:
Tracing these lows gives us an ascending support line.
On Jun 3, the EOS price broke down from the support line.
In order to figure out where it is heading, a look at a longer time-frame is required.
On Feb 17, the price made a low of $2.82. A gradual increase took it to a high of $4.53 on Feb 24. Since then, the price has been trading inside the ascending broadening wedge outlined below:
On May 31, the price touched the resistance line of the channel. It has been decreasing since.
At the time of writing, EOS is trading in the middle of the wedge.
How long will the decrease continue?
A look at technical indicators is required in order to find out.
This is known as bearish divergence and often precedes price decreases.
On May 27, there is another case of divergence in the 31 highs.
In order to get a clearer picture of the price outlook, we will analyze the price alongside the 10-day and the 20-day moving averages (MA) below:
On May 11, the 10-day MA crossed above the 20-day MA. This is called a bullish cross and often indicates that an uptrend has begun. This preceded the increase towards the resistance line.
However, the recent decrease has taken the EOS price below both MAs. A bearish cross has yet to occur.
The use of these indicators makes it likely that the price will decrease until it finds a support area.
Do you think the price of EOS will reach the support area? Let us know your thoughts in the comments below!
